BUSINESS

PLAN
GROUP ONE
ENRIQUEZ, DARLYN
DOON, JHULIA
SARSALE, JOYCE
QUITAY, SHANE
CUYOS, KAYE
 Chapter I
Introduction and Its Background

1.0 Introduction
Outsourcing payroll has been a trend for several types of businesses; particularly to
those who are only starting up. Different kinds of enterprises have dilemmas regarding
their payroll because it is time-consuming, stressful and costly that is why they chose to
outsource their payroll. Payroll outsourcing firms are responsible for handling
information about the employees of their clients, knowing the different regulations and
the changes on them, calculating the taxes their client's employees have to pay and the
payroll itself. To the private companies who are much focused on their core-
value, outsourcing their payrolls are much efficient and convenient compared to doing
it on their own. By outsourcing their payrolls, the business could also gain
their employees' trusts and promptly stop the potential
biases surrounding them. Businesses that offer payroll services are in demand that is why
starting up an establishment like this could be a make-or-break for a budding
entrepreneur.
Creating ideas for businesses is a critical decision entrepreneurs have to do. Since
they are starting up, they need to have fresh and at the same time, in demand ideas.
Choosing payroll services benefit a lot of companies because of the rapid increase of
companies and enterprises in our country. The industry also holds a good reputation because
of the business conditions pioneer payroll services offer. Thus, making the payroll services a
better choice for entrepreneurs. Add the fact that this kind of business requires lesser
equipment and focused on using different payroll software to service clients. Entrepreneurs
also have the ability to choose whether they will start from a franchise or making a new one.

A. Historical Background

Payroll outsourcing has undergone quite a facelift since its introduction to the
business world in the first half of the 20th century.
 In the beginning, payroll processing was a very manual process. It was the 1940s
and the idea of automated payroll processing services was not yet on the table. As a
business owner, outsourcing payroll meant that you were paying someone else to go
through the manual steps that you would otherwise be taking on to pay your employees.
In fact, real automation – the use of control systems and information technologies –
didn’t hit the stage until later that decade.

As the world turned, automation took the wheel. In 1947, General Motors
established an “automation department,” tying together all the business and operating
functions of producing automobiles. But it wasn’t until the late 1950s and ‘60s that
computer science, a requirement for scalable automation, was established as a distinct
academic discipline. In 1962, Purdue University offered the first computer science degree
program in United States. Payroll outsourcing has never been the same since.

As computers infiltrated, technology revolutionized payroll management. In the

early 1970s through the late ‘80s, dozens of payroll companies began to emerge.
Leveraging “the latest” computer technologies, these payroll groundbreakers began
developing simpler and more streamlined processes. Payroll management was becoming
easier, repetitive and scalable.

By automating payroll administration, these early payroll providers revolutionized

the payroll outsourcing industry. As things sped up, payroll-operating efficiency hit the
ground running. Using systems, computers and scalable processes, these payroll tycoons
drove down the cost of the business payroll function. It was now affordable for small
business owners, who wanted out of the painful payroll game, to outsource their payroll
processing and alleviate those payroll headaches.

As the system got popular, the system got legitimized. In 1982, the American
payroll association was founded to provide education, support and representation for
payroll providers at the federal, state and local levels.
 In the mid-1980s, a new payroll outsourcing entity began taking shape: the
professional employer organization (PEO). PEOs were born out of the staffing industry in
the late 1960s. Otherwise referred to as “co-employment,” a PEO becomes the employer
of record for tax and liability purposes. Historically, businesses that recruited a PEO were
in search of cheap healthcare and workers’ compensation insurance, as well as ways to
reduce their total state unemployment tax (SUTA) expenses.

When PEOs jumped, the rules got dumped. Stemming from a combination of
factors, not the least of which was a complete mismanagement of funds by many PEOs,
health plans began to implode – taking along with them the suta entities created to house
their clients’ employees. In fact “SUTA dumping,” as it became known in the industry,
was outlawed in 2004 when President George W. Bush signed into law the SUTA
Dumping Protection Act, requiring all 50 states to enact anti-SUTA Dumping Legislation
by 2007.
It’s no wonder that after nearly 30 years, the national association of professional
employer organizations (NAPEO) indicates that only 2% of the country’s workforce is
held within a PEO arrangement.

As the industry matured, payroll outsourcing truly soared. In the late 1990s, a new
payroll outsourcing framework surfaced to try and rectify the troubled peo industry: the
administrative service organization (ASO). The main difference between an ASO and
PEO is that within an ASO arrangement, the employer maintains the employer of record
status. Therefore, there is no co-employment relationship with an ASO. The main
components of an ASO, though, are similar to a PEO (e.g., payroll processing and
employee benefits). Most national payroll providers offer either a formal ASO solution
or bundled payroll solutions that satisfy the main components of an ASO arrangement.
Today, personalized payroll outsourcing is the name of the game.

Today, there are nearly 2,000 payroll companies operating in the United States.
Serving approximately one-third of all businesses, personalized payroll providers offer a
suite of services that transcend simple payroll processing, including HR support,
employee benefits administration and workforce solutions.

1.1 Mission, Vision and Objectives

Mission:
It is the mission of Paycheque to provide for our clients by exercising a
timely and reliable service in assisting every administration in processing their
payrolls, compensations and interpreting their payroll information. Our
organization guarantees every client that we are an organization that is dedicated
in handling the pays of their employees without any bias.
Vision:
Paycheque strives to support the company as
it works to achieve its mission. We will provide leadership to our professionalism
and knowledge of payroll practices by making sure that the company that we've
been working on stays in compliance with payroll and taxation
issues. Our organization will be receptive and responsive to employees' and other
departments' needs.

Objectives:
• To gain and increase clients consecutively for the next three years.
• To reduce the inquiries and call back time of the clients to no more than
three hours.
• To increase the profit of the business by twenty percent for the next five
years.
Goal:
• Create a quality-based payroll outsourcing business.
• Provide good quality service for our clients.
• Increase profitability of the business.
1.2 Business Name
The name Paycheque came from the idea of a pay slip. From   the   word   “pay”,   the  
business   is   in   charge   of   processing   the   payrolls   and   compensations   of   our   clients’  
employees.   The   word   “cheque”,   on   the   other   hand,   came   from   the   British   term  
cheque  or  the  equivalent  of  the  American  word  check.  The  word  was  created  from  
the   idea   that   paychecks   were   created   to   lessen   the   burden   of   carrying   a   large  
amount  of  money  in  your  pocket.  Just  like  a  paycheck,  the  business  itself  also  lessens  
the   worries   of   our   client   by   assisting   them   in   processing   their   employees’   payroll,  
designating   the   proper   information   regarding   their   payroll   and   reporting   to   them  
accurately.  

1.3 Business Logo

The logo’s structure came from the idea of the usual color of a bill; which is the
color green. Since the business will be established in the Philippines, the currency that
was put in the logo is Philippine Peso. The Philippine Peso inside the knob of the vault
door symbolizes that the business ensures the safety of the clients’ money and
information. The logo was inspired by the design of several payment centers in the
Philippines and the combination of our ideas. Putting it together, the logo was created.

1.4 Business Location

We want to start the business in a commercial building located at 39K Gen. Luiz
Bagbaguin Valenzuela City at the 2nd floor, namely Commercial Offices Space. We
choose this place since there are lot of manufacturing companies like Insulite
Manufacturing Corporation, Snack Haus Manufacturing Corporation, CDO Foodsphere
Corporation and many more, this companies can be our customer and offered them the
services that we have. Also we have no competitors in this area.

Figure 1 Location Map

Figure 2 Sketch Map

1.5 Core Values
Core Values are one of the top priorities of businesses in every field. These are what
helps the companies and enterprises grow and achieve their goals and beyond that.
Paycheque believes that this following should gain by the business:

C- Commitment to stability of work is a must to its field. Creating payrolls requires

logical decisions and accordance to the clients’ instructions.
H- Hard work also plays an important role on the business. Employees and employers
should work harder for the company to prosper.
E- Efficient is one of the most important aspects of the payroll service. Not only
employees should do their jobs but also they must be productive.
Q- Quality-based. Businesses should focus on the idea that quality is one of the most
important aspects in giving services.
U- Understanding what is more important in making decisions makes the company and
the employees a sense of safety and unbiased reputation.
E- Empowering their own people makes the company a better place to work for.